DaVita

DaVita Inc.

View of headquarters from the Denver Millennium Bridge
Company type	Public
Traded as	NYSE: DVA S&P 500 component
Industry	Healthcare
Founded	1979 (1979)
Headquarters	Denver, Colorado, U.S.
Key people	Javier J. Rodriguez (CEO)
Services	Kidney dialysis
Revenue	Template:US$ (2024)
Operating income	Template:US$ (2024)
Net income	Template:US$ (2024)
Total assets	Template:US$ (2024)
Total equity	Template:US$ (2024)
Owner	Berkshire Hathaway (41.2%)
Number of employees	76,000 (2024)
Website	davita.com

DaVita Inc. manages 2,675 outpatient dialysis facilities across the United States, serving approximately 200,800 patients, along with an additional 367 centers located in 11 countries that care for 49,400 patients. The company focuses on providing treatment for end-stage renal disease (ESRD) and commands a 37% share of the U.S. dialysis market. Incorporated in Delaware, its corporate headquarters are situated in Denver.

In 2023, government-funded programs such as Medicare generated 67% of DaVita's total revenue and covered 89% of its patient base. Meanwhile, commercial insurance providers accounted for 33% of revenue but contributed the majority of profits due to higher reimbursement rates.

DaVita holds the 341st position on the Fortune 500 list.

History

Established in 1979 originally as Medical Ambulatory Care, Inc., a subsidiary under National Medical Enterprises (now known as Tenet Healthcare), DaVita has experienced notable strategic transformations.

In August 1994, DLJ Merchant Banking Partners purchased a controlling 70% interest through a $75.5 million leveraged buyout, which included a $10.5 million capital infusion from DLJ, leading to the renaming of the business as Total Renal Care Holdings, Inc.

The firm completed its initial public offering in October 1995, raising $107 million. By December 1996, DLJ had achieved a remarkable return of 386% on its original investment.

Acquisitions and Divestitures

On February 27, 1998, the company completed the purchase of Renal Treatment Centers for $1.3 billion in stock. The merger encountered significant difficulties, which culminated in the departure of both the CEO and CFO in July 1999. Despite the stock price tripling between 1995 and 1998, it experienced a sharp decline of 71% year-to-date by mid-1999. Subsequently, in October 1999, Kent J. Thiry, aged 43 at the time, was named CEO.

In the year 2000, the firm sold off its international operations and adopted the name DaVita Inc., inspired by the Italian expression "Dare Vita," translating to "to give life."

DaVita pursued growth through several acquisitions, including Gambro Healthcare in October 2005. In 2012, it acquired Healthcare Partners for $4.42 billion; this segment was rebranded as DaVita Medical Group in 2016 before being sold to UnitedHealth Group’s Optum for $4.3 billion in June 2019.

Further strategic purchases consisted of Colorado Springs Health Partners in 2014—employing 600 staff and serving 110,000 patients—the Everett Clinic Medical Group in March 2016 for $385 million, which catered to 315,000 patients across 20 locations, and WellHealth Quality Care in May 2017.

These targeted acquisitions and divestitures have played a pivotal role in evolving DaVita’s operational strategy and increasing its footprint within the healthcare sector.

Legal Issues

In October 2014, DaVita agreed to a $350 million settlement to resolve allegations related to illegal kickbacks paid to physicians.

By June 2015, the company paid $450 million to settle claims accusing it of submitting improper bills to the U.S. government for unnecessary drug disposals.

A jury verdict in 2018 awarded $383 million to families of patients who suffered fatal cardiac arrests following treatment at DaVita facilities.

In October 2018, DaVita reached a $270 million settlement concerning False Claims Act violations involving inflated Medicare Advantage reimbursements; whistleblower James Swoben received a $10 million award.

In July 2021, DaVita and former CEO Kent Thiry faced indictments over alleged labor market collusion with Surgical Care Affiliates but were acquitted by April 2022.

The Federal Trade Commission (FTC) imposed restrictions on mergers involving DaVita in Utah in October 2021 due to its history of acquiring competitors.

In 2024, the FTC initiated an antitrust inquiry into DaVita and Fresenius Medical Care over purported strategies aimed at excluding smaller dialysis providers from the market.

In May 2025, UFCW Local 1776’s benefits fund filed a class-action lawsuit against both DaVita and Fresenius, accusing them of conspiring to artificially inflate dialysis treatment costs by billions of dollars.